BRAD-CHEM SHOULD ACHIEVE CARBON NEUTRAL

Carbon Neutrality

Brad-Chem Ltd. should achieve Carbon Neutrality for Scope I and Scope II, according to early indications. That is to say, our energy use in our on-site operations generates a sum total of zero carbon emissions. To clarify, we are generating enough renewable energy from our solar panels to completely offset any CO2 emissions from our site. In fact, we calculated that our on-site operations were carbon negative for the month of April 2024. In other words the renewable energy that we put back into the grid actually outweighs energy use from carbon emitting sources for our on-site activities.

In December 2023, we fitted solar panels to the roofs of our buildings. In March, 2024 we switched to a REGO certified 100% renewable electricity supplier and supplier of 100% Renewable Gas Guarantee of Origin (RGGO) gas. OFGEM issues REGO certificates for every MWh of electrical energy generated from renewable sources. Furthermore, the energy supplier must publish their fuel mix, ensuring transparency. The Green Gas Certification Scheme issues RGGOs for each kWh of renewable gas injected into the gas grid and retires them when the kWh is used up.

In line with UK Government targets, we prioritized reducing our scope I and scope II carbon emissions to net zero by 2030. However, Greater Manchester Combined Authority targets full net zero for scopes I, II and III by 2038. Accordingly, we planned to achieve net zero for scopes I and II significantly sooner than 2030. We started monitoring this year in February. However, we measured our first full month on our new 100% renewable tariff in April 2024.

Renewable Gas and Greenhouse Gases

Renewable gas derives from microbial action on animal and plant sources, such as animal manure, crop waste, food waste, and wastewater. By switching to renewable gas, we contribute to a circular economy, help to reduce improper disposal of wastes, and reduce the use of landfill. However, the resulting biogas contains the greenhouse gases methane and CO2. Moreover, burning Biomethane from Biogas does produce CO2 and other greenhouse gases. While that may be true, we still substantially reduced our overall contribution to GHG emissions by switching to renewable Biomethane.

Microbes produce Biogas by anaerobically digesting waste materials. Biogas contains approximately 50-70% methane, which is used as a fuel, and approximately 30-50% carbon dioxide. Moreover, both of these components are greenhouse gases. However, our gas supplier supplies the Biomethane to the grid and their Biogas generator supplies the CO2 to a drinks manufacturer. After the microbes have produced the biogas, the generator uses the remaining digestate to fertilize their own farm land.

We use the biomethane from the grid for our heating and hot water. When we burn biomethane, this produces CO2, a greenhouse gas, in the same way as burning methane from fossil fuels. Nevertheless, by switching to biomethane we do reduce GHG emissions.

To explain, while microbes digest waste to produce Biogas in commercial anaerobic digesters, microbes in the environment also produce biogas. Furthermore, microbes digest waste in low oxygen or anaerobic conditions in landfill, wastewater and slurry. These processes slowly release Biogas to the atmosphere. As has been noted, Biogas contains both carbon dioxide and Biomethane, a more potent greenhouse gas. Therefore, when we burn Biomethane, we convert it into a lower CO2e form. In this way, not only do we obtain useful energy from waste; but, also, we reduce the biomethane that would, otherwise, end up in the atmosphere. in this way, we are contributing to a circular economy and reducing overall emissions.

Renewable Electrical Energy and Carbon Emissions

Switching to renewable electrical energy has meant that we are now purchasing from a supplier that is supplying only renewable energy to the grid. This means that our supplier does not use fossil fuel to generate our electricity. However, in practice, we draw our energy from the grid. This means that we actually use electrical energy from the current mix of sources that make up the UK National Grid. While this may be true, our supplier only invests in renewable energy. Consequently, by switching to a renewable energy, we are helping to increase the proportion of energy inputs to the grid from renewable sources.

In addition to switching to a 100% renewable energy and Green Gas tariff, we also have solar panels on the roofs of all of our buildings. The energy that we generated from our solar panels in April 2024 was significantly greater than the amount that we typically use from Gas in April. Furthermore, we achieved this excess solar energy despite the unusually wet and dull weather this April. Moreover, while biomethane does produce CO2, the excess energy that we have generated more than offsets our energy use from Green Gas.

For these reasons, we can say that early indications suggest that we are currently operating at least carbon neutral for Scope I and Scope II emissions. However, we need to collect a full year of data to confirm carbon neutrality. Extrapolating from the excess in April verus the energy we use from Biomethane, we may well be carbon negative for the full year. However, we are yet to ascertain the full year data and, here, we only refer to our Scope I and Scope II emissions. We will also endeavour to reduce our scope III emissions, where possible.

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